Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

12-2017

Abstract

Financial inclusion, or providing access to and active use of affordable financial products to the 2 billion unbanked adults globally, can facilitate individual prosperity, reduce poverty and increase economic development. Digital technologies such as mobile phones, cloud computing, data analytics and blockchain are one of the biggest enablers of financial inclusion by making it economically possible to serve these individuals. This dissertation examined the role of digital technologies in financial inclusion from the perspective of new financial technology (Fintech) ventures serving the unbanked and underbanked. Supported by strategy management theories, I identified key factors that impact the success of these Fintech startups, as measured by financial performance and financial inclusion. I collected primary data on 63 Fintech startups from Southeast Asia, India and Africa and ran multi-variate regression and binomial logit models to quantify the main effects of these factors. The results showed that founders with prior financial services experience, the degree of customer centricity in the company’s business model, and strategic partnerships with financial institutions and e-commerce firms, had a significant and positive correlation with financial inclusion (as measured by Active Customers) and financial performance (as measured by Annual Revenue). A qualitative analysis of 4 Fintech startups from the data sample demonstrated that other factors such as scalability, prior startup experience, and type of product sold (pull vs. push) are also critical to the startups’ success, and provide insights for further empirical research. This study has immediate practical applications for VC firms and investors that evaluate new technology ventures in financial inclusion by providing a quantitative, data-driven methodology. Finally, the results highlight that a mix of quantitative and qualitative insights is important to move research forward on the vital role that Fintech startups play in driving financial inclusion in emerging markets.

Keywords

Financial Inclusion, Financial Technology (Fintech), Social Impact, Entrepreneurship, Strategy Management, Banking

Degree Awarded

PhD in Business (General Management)

Discipline

Entrepreneurial and Small Business Operations | Finance and Financial Management | Strategic Management Policy

Supervisor(s)

THOMAS, Howard

First Page

1

Last Page

258

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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